Electra Private Equity’s interim has released its interim results for the six-months ended 31 March 2015. These show a 12% increase in NAV during the period, whilst Electra’s share price rose 19%, reflecting a narrowing of the discount. This compares favourably against the FTSE All-Share returned, which returned 5% during the period. The total return on the portfolio was £11m of which the largest gains were from AXIO Data Group (£46m), The Original Bowling Company (£31m), Park Resorts (£23m), Audiotonix (£23m) and Elian (£20m). Electra targets returns of 10-15% per annum and its diluted NAV per share, including dividends, is up 251% over ten years. This is equivalent to a ten-year annualised return of 13%, which places Electra towards in the middle of its target range. During the period Electra invested £129m and realised £121 million (including income). In terms of investments, £99m was invested in a TGI Fridays (a new investment) whilst £30m was invested in follow on investments and other investments (principally Afflex Corporation).
An interim dividend of 38p per share has been announced. This follows the review earlier this year of Electra’s capital structure, distribution policy and fee arrangements which itself followed the requisition by Sherborne Investors, which was defeated in October 2014. Following the review, Electra now targets to return to shareholders 3% of NAV per annum, by way of cash dividend or share buybacks. The review also saw a reduction in the management fee as well as the repayment of Electra’s multi-currency facility which was used primarily to provide currency hedging.
ELTA : Electra has a good start to the year